Singapore's business and financial environment is ranked among the top in the world. Its strategic location and free trade / pro-business policies have also ensured its place as one of the world's busiest Ports. Singapore enjoys high political stability and excellent infrastructure and communications. These features and attractive tax policies and concessions have encouraged many international businesses to establish operations in Singapore, ranging from holding companies and headquarters to service or treasury centres.
FEATURES & BENEFITS OF SINGAPORE companies
Fiscal advantages
- Singapore taxation on foreign income: generally nil (but see below)
- "Territorial" tax system, whereby Singapore tax is only payable by a Singapore company's income on Singapore "sourced" income. For example, if the company derives income from carrying on a trade, profession or business in Singapore. Singapore sourced income is presently subject to tax at the rate of 20%. However the effective tax rate may be reduced (to 10 or 15%, or 0% in certain cases) for business that qualify for tax incentives (for example, headquarter companies, regional data centre companies, offshore insurance companies, treasury management companies, asset management companies, etc)
- Foreign source income is not taxed unless remitted in Singapore. Nevertheless, win view of Singapore's extensive double taxation avoidance treaty network (see below) and unilateral tax relief, foreign dividends, branch profits or services income received in Singapore may generally be re-distributed out of Singapore tax-free to foreign shareholders
- Annual statutory filing fee: S$ 50
Directors
- Minimum number of directors: 1
- Corporate directors permissible: no (must be natural persons)
- Local director requirement: yes (need at least 1 Singapore resident director)
- Publicly accessible records of directors: yes
- Location of directors meetings: anywhere
Shareholder (members)
- Minimum number of shareholders: 1
- Corporate shareholders permissible: yes
- Local shareholder requirement: no
- Location of shareholders meetings: anywhere
- Publicly accessible records of shareholders: yes
Beneficial owners (clients)
- Publicly accessible records of beneficial owners: yes
Company Secretary
- Appointment of Singapore resident Company Secretary: required (a natural person, need not be a professionally qualified Secretary and can be a director except a sole director)
- Publicly accessible details of company secretary: yes
Share Capital
- Standard Authorised Share Capital: S$500,000
- Minimum issued and paid-up share capital: S$1
- Permitted currencies: any
- Registered shares (Bearer shares not permitted)
Accounts and returns
- Requirement to file annual Accounts: yes
- Auditor appointment & Audit requirements: For companies with an annual turnover exceeding S$ 5 million, annual audited accounts are required to be filed with the Registrar. The accounts are required to be audited by Singapore auditors. For companies with an annual turnover less than S$ 5 million, annual accounts need to be filed but there is no auditing requirement.
- Requirement to file annual company return: yes
Other
- Requirement: registered office in Singapore (which must be a physical address and not just a Post Office Box, can be a bank/lawyer/accountant's office).
- The Subscriber must be a natural person and can be a proposed director/ secretary/shareholder/officer who is a resident of Singapore
- Requirement to hold Annual General Meeting (AGM): yes
- Migration to and from Singapore: Not permitted
- A Singapore company has the same powers as a natural person, including the right to sue and be sued. It is a separate legal entity with limited liability and has perpetual existence
- Double taxation treaty access: yes - Singapore has an extensive double taxation avoidance treaty network, including with Australia, Bahrain, Belgium, Canada, China, Czech Republic, Denmark, France, Germany, India, Indonesia, Japan, South Korea, Latvia, Luxembourg, Malaysia, New Zealand, Poland, South Africa, Sweden, Taiwan, Thailand, United Arab Emirates, UK, etc
- Name restrictions: Names which resemble names of existing companies or which the Registry deems undesirable will not be approved
- Trading restrictions: Generally no restrictions, subject to local licensing requirements. For example, prior licencing is required for banks, most financial services companies, etc
- Language of Corporate documents: English
- Mandatory suffix to denote limited liability: "Private Limited" or "Pte Ltd" for private companies
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